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Beat the Peanut Rush

Over the past few weeks, there have been rumblings and rumors of impending doom for peanut-butter lovers. Some people have stocked up on peanut products, while others are suspicious that these might be tactics designed to scare them into buying. After all, no one wants to hoard surplus supplies unnecessarily.

Well, the warnings have been confirmed. Some of our candy suppliers have even reported unavailable products. Due to a perfect storm of drought, rising energy prices, competing crops, and meager plantings, the U.S. is experiencing a peanut shortage. Overall peanut production is down 13%, and the price for a ton of runner (think peanut butter) peanuts is 266% what it was a year ago. This means that peanuts will be harder to get, and they’re about to be more expensive.

Over the last few months, many retailers and manufacturers have been absorbing rising costs related to peanuts. But Kraft is set to raise the price of Planters Peanut Butter by 40% on October 31. Jif will cost 30% more. And Peter Pan is right behind them. Candy producers are among the hardest hit, as they’ve also been struggling with rising sugar and chocolate costs. And sure, the market is sure to level out eventually. But prices aren’t likely to go back down until next September, and even that will depend on next year’s harvest.

So unless you’re planning to leverage the shortage to help your new diet, you might want to do a little stocking up.